Square Yards to invest $2 million in online home loan platform, targets to double disbursements to Rs 1,500 crore

The company has forayed into the online home loan business by launching a new portal squarecapital.co.in for its year-old mortgage advisory subsidiary firm Square Capital.Sanu Sandilya | ETRealty | July 26, 2016, 16:10 IST

NEW DELHI: Real estate startup Square Yards is planning to invest $2 million in its online home loan technology platform and targeting to double loan disbursements to around Rs 1,500 crore by the end of current financial year.

The company has forayed into the online home loan business by launching a new portal squarecapital.co.in for its year-old mortgage advisory subsidiary firm Square Capital.

It focuses mainly on the disbursement model rather than a lead generation model. "We are not into the volume game but are focusing on making online fulfillment better. We are aiming to double our home loan disbursal to around Rs 1,500 crore by March end next year," said Indrajit Sidhanta, principal partner and business head, Square Capital. "We would be investing around $2 million into the mortgage platform by Q4 FY17, provided all the necessary infrastructure are in place," he added.

Square Capital was started more than a year ago and has disbursed around Rs 700 crore of home loan till now, with the figure including log-ins totaling around Rs 1,550 crore.

The company has empanelled around 12-13 major banks and NBFCs till now and is in process of integrating its systems with those of lenders’ backend systems.

“Square Capital has been one of the fastest growing and the most profitable business for Square Yards and we want to replicate our success in real estate to the fintech industry with an aim to become largest online to offline (O2O) loan aggregator and facilitator in India” said Tanuj Shori, founder and chief executive officer, Square Yards.

The new portal aims to take the entire loan borrowing process online starting form lead origination, credit evaluation, helping customers choose the right product from the appropriate lending organization, getting online KYC and documentation, application login, sanctions and right through loan disbursal.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.